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Press Releases

January 30, 2014

Signing of Japanese ODA Loan Agreement with the Government of India
—Contributing to a Human Resources Development for Future Science and Technology in India—

On January 28, the Japan International Cooperation Agency (JICA) signed Japanese ODA loan agreements with the Government of India to provide up to 23.035 billion yen for the “Campus Development Project of Indian Institute of Technology, Hyderabad” at New Delhi, India.

The project is expected to develop human resources in the fields of science and technology in India as well as strengthen the Japan-India relationship through human and academic exchange, by means of the construction of facilities of the Indian Institute of Technology, Hyderabad (IIT-H). Based on a series of the Joint Statements by the Prime Ministers of India and Japan (2007-14), the two countries have made mutual and comprehensive efforts towards IIT-H through an industry-government-academia partnership. The project is expected, in combination with an on-going technical cooperation project provided by JICA, to contribute to the development of human resources who will lead the economy and promote technical innovation. JICA and the Government of India signed two loan agreements for IIT-H: “Campus Development Project of Indian Institute of Technology, Hyderabad” and “Campus Development Project of Indian Institute of Technology, Hyderabad (Phase 2)”.

Working population in India is expected to increase by 10 million every year. One of the urgent challenges facing India is to encourage domestic industries which can absorb the increasing labor force. Therefore, there is an increased need of developing higher education institutions in the area of science and technology which produce human resources with sufficient knowledge and skills, who can lead research and development to identify a new methodology of technical innovation as well as meet needs from industrial sector.
The Gross Enrollment Ration (GER) for higher education in India was 17.9% in 2010, much lower than the global average of 29.1%. This number is even the lowest among the BRICs countries (75.9% in Russia, 2008, 25.6% in Brazil, 2005) and it is one of the bottlenecks for India’s economic development. The Government of India aims to improve the GER to 25.2% by 2017, thus the improvement of higher education institutions is the highest priority in the government’s education policy.

Since founded in 2008, IIT-H has been the pinnacle of India’s educational institutions for science and technology. Of all the buildings proposed to be constructed under this project, six facilities, including an international exchange center and student center, are being designed under architectural cooperation with the University of Tokyo. In line with the announcement by the Government of Japan to support IIT-H through an industry-government-academia partnership, efforts are underway on the academic exchange and human resource development at universities and research institutions, in order to improve the level of science and technology in both countries. Specifically, the promotion of human exchange combined with strength of educational and research systems are being brought by technical cooperation by JICA. Adding to that, research interactions among universities and institutions from both countries are being promoted through the cooperation scheme named SATREPS (the Science and Technology Research Partnership for Sustainable Development).

photoconceptual drawing of business incubation center which will be constructed under the project

1. Terms and Amounts of Loans

Project title Amount
(million yen)
Annual interest rate (%) Repayment
Project Consulting services
Campus Development Project of Indian Institute of Technology, Hyderabad 5,332 1.40 0.01 30 10 General untied
Campus Development Project of Indian Institute of Technology, Hyderabad (Phase 2) 17,703 1.40 0.01 30 10 General untied

2. Project Summaries
Executing Agency
The Indian Institute of Technology, Hyderabad
Address: Ordinance Factory Estate, Yeddumailaram, Andhra Pradesh, 502205, India
Phone: +91-40-2301-6033, fax: +91-40-2301-6032

Planned Implementation Schedule
(i) Completion of project: March 2018 – when the facilities are put into service
(ii) Issuing of letters of invitation for consulting services (including construction monitoring): February 2014
(iii) Tender announcement of initial procurement package for international competitive bidding on project construction:
Procurement package titles: Construction of Knowledge Center, RCC, Lecture Hall Complex, Main Building and Students’ Hostels, 8 Department Buildings and Core Laboratory
Release date: December 2014


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